Fitch rates VimpelCom bond BB+

Fitch Ratings said it assigned an expected BB+ rating to GTH Finance BV’s proposed bond.

The bond will be guaranteed by VimpelCom Holdings BV.

The expected rating is in line with the group’s ultimate parent, VimpelCom Ltd.’s issuer default rating.

The proposed bond is effectively structured as a senior unsecured obligation of VimpelCom Holdings, which is an intermediary holding company within Vimpelcom group and the group’s main issuer of public debt, the agency said.

VimpelCom is a geographically diversified mobile-focused telecoms operator controlling the seventh-largest global subscriber base of about 217 million, including Italy, Fitch said.

The company’s leverage is moderate and this is expected to reduce in the next three years, the agency said.

But there is a significant currency mismatch as more than 70% of its gross debt is in U.S. dollars, Fitch said.

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